Miami-Dade County is experiencing a significant influx of wealthy individuals and foreign investors, dramatically reshaping its real estate landscape. This trend, driven by favorable tax policies, warm weather, and a perception of better quality of life, has led to soaring housing prices, making the area increasingly unaffordable for many local residents.
Millionaires Flock to Miami, Driving Up Housing Costs
Miami is witnessing an unprecedented surge in its millionaire population, with a 94% increase between 2014 and 2024, according to a report by Henley & Partners and New World Wealth. This influx of high-net-worth individuals, many relocating from states like New York, New Jersey, California, and Illinois, has contributed to a doubling of condo prices over the past decade. This affordability crisis is pushing out lower and middle-income earners, with Miami-Dade County estimated to be short 90,000 affordable housing units for households earning less than $75,000 annually.
- Miami’s millionaire population grew by 94% from 2014 to 2024.
- Housing prices have more than doubled in the last decade.
- A significant number of local residents, particularly younger workers, are migrating out due to high housing costs.
New Yorkers Lead Domestic Migration to South Florida
Florida, and particularly Miami-Dade and Palm Beach counties, has become a prime destination for New York City residents seeking to escape higher taxes, cost of living, and quality-of-life concerns. Between 2018 and 2022, nearly 16,000 New York City residents moved to Miami-Dade, bringing an estimated $6.1 billion in income. Another 25,000 moved to Palm Beach and Broward counties with nearly $4 billion. This migration pattern has significantly boosted Florida’s economy, with out-of-state movers netting the state $36 billion in one recent year.
Miami Remains a Top Destination for Foreign Real Estate Buyers
Despite a recent slowdown, Miami continues to be the most popular city in the U.S. for foreign real estate buyers. In 2024, foreign buyers purchased $3.1 billion of South Florida properties, though this represents a decrease from $5.1 billion in 2023. Buyers from Argentina, Colombia, and Canada were the largest international groups. Factors contributing to the decline include a strong U.S. dollar, low housing inventory, and uncertainty surrounding the U.S. presidential election. However, South Florida’s share of foreign buyer activity remains significantly higher than the national average.
- Foreign buyer sales in South Florida declined to $3.1 billion in 2024 from $5.1 billion in 2023.
- Miami-Dade County accounts for 65% of South Florida’s foreign buyer market.
- A strong dollar and political uncertainty are cited as reasons for the slowdown in foreign investment.
Challenges in the South Florida Condo Market
The South Florida condo market, historically bolstered by foreign investment, has seen a significant pullback. Sales to international buyers dropped to 10% of transactions in the region from August 2023 to July 2024, the lowest point since 2015. This decline is attributed to high interest rates, elevated prices, and restrictive immigration policies. The aftermath of the Champlain Towers South collapse in 2021 also led to new, costly renovation mandates for condo buildings, further impacting the market and potentially deterring foreign buyers who previously viewed U.S. real estate as a safe haven.
Sources
- Millionaires flock to Miami, reshaping local housing market, Miami Herald.
- NYC lost $9 billion of income to Miami, Palm Beach in five years, Fortune.
- Miami remains top U.S. city for foreign buyers, Scotsman Guide.
- Foreign Buyers Step Back From South Florida Condos, The New York Times.